Have a Tax Question? Ask a Tax Expert
Hi and welcome to Just Answer!Several issues...A federal tax lien is the government’s legal claim against your property when you neglect or fail to pay a tax debt. The lien protects the government’s interest in all your property, including real estate, personal property and financial assets.
A lien is not a levy. A lien secures the government’s interest in your property when you don’t pay your tax debt. A levy actually takes the property to pay the tax debt. If you don’t pay or make arrangements to settle your tax debt, the IRS can levy, seize and sell any type of real or personal property that you own or have an interest in.
In short - a lien is the IRS’s authorization to take your property, but the levy is the actual action of taking the property.So in case of levy - you need to act quickly and file for a short stay of execution requesting a Collection Due Process Hearing. In case of lien - the might levy.As you are not sure if either a lien or levy actually exists - but you might suspect it does - you need to contact the IRS and verify.
The best way would be to contact the IRS customer service number is XXXXX - please be prepared to wait.Another option would be to order a tax account transcript
Thanks for the response. I was told by this person from Insight Financial Solutions that the Georgia State Department of Revenue has filed a lien against me for almost $13k. It was not the IRS, and I was not aware that this was filed. She said it was filed on August 8th of last year.
Does what you said about the IRS, still apply to the Georgia Department of Revenue?
Yes - tax collection would be very similar. As you have a state tax lien - you may expect a federal tax lien as well (assuming you also owe to the IRS)
I do not know that I do because when I filed last year, I was due a refund.
from state and federal.
I went so far as having HR Block review and refile where necessary, five years worth of returns because the State of Georgia "lost" (their words, not mine) a lot of records.
several years ago, they placed a lien on my for over $27k, and told me that I had not filed for a period of six years I think it was. Of course, I had my records, and I promptly submitted those records.
Here is contact information of Georgia DOR - https://etax.dor.ga.gov/ptd/adm/contact.aspxYou need to contact and verify (1) the amount you owe (2) if there is a tax lien and when it was filed.
I had HR Block do that review, explicitly to make sure that my tax records were clean and in good order. The levy "experience" was not pleasant
If you do have tax debt - you need to act - and the best option would be to get installment payment plan.
Okay, so that's the advised opinion course of action. No need to file a stay of enforcement at this time then?
Another question - how that company - Insight Financial Solution found out that you have a lien?I would be very suspicious when someone is asking to pay upfront.
I'd like to know the answer to that as well. She said that she was surprised other company's like hers were not already calling me. And asking for $3k up front was a bit off putting to say the least...
If you only have a lien - most likely you do not need to file a stay of enforcement. But if there is a levy - you might want to do that.So - your first step - to contact taxing authorities and clarify your situation.
I do know, that several years ago, when the levy was filed, that obviously become public record. Which makes me wonder if this is a residual after effect of that issue. I know for a fact that issue is gone, I have the release from the Dept of Revenue.
I'll reach out to the Dept of Rev on Monday. Sadly, I have conference calls the rest of the day.
I appreciate the response. Anything else I need to know before we finish?
Both liens and levies might be public records and will also reflected on your credit report.If that a lien against your home - it will be registered in your county and would be available to public - but I doubt that GA DOR would seize the house where you live.So - you need more clarification on your situation.
That's all I need to know right now?
Yes - the first step - you need clarification. And will act based on that information.I would not pay just based on the phone call.
Got it. Good to go. Thank you.
You are welcome.